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The costs of managing inefficiently your contracts.

According to EY, companies lose between 1 and 5% of EBITDA every year, due to inefficient management of contracts. 

This forces companies to pay more attention to the management of their contracts in order to maximize profits.

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A more efficient management of contracts

The management of the contract lifecycle gives a methodological framework to manage these documents in their different stages, from request to renewal or termination.

The benefits are seen throughout the company when the executive team has more control over key aspects such as the scope of contracts, prices, penalties, terms, etc.

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Benefits

Among the benefits of the efficient management of contracts, the following should be mentioned:

“Increased EBITDA between 1 and 5% by eliminating leaks of value in contracts.” Source: EY

“19% reduction of creation, negotiation and contract approval times.”. Source: Aberdeen Group.

“Annual revenue increase of 4% by shortening the negotiations of contracts." Source: IACCM.

“Reduction of 99% of time spent in the electronic signing process vs the traditional way."  Source: Signaturit.

“Companies can save up to 5% of revenue managing agreements after signing." Source: Goldman and Sachs.

“3% saving on purchase orders by consolidating contractual information.” Source: Aberdeen Group.

“Average increase of 5% of revenue associated with contract renewal.” Source: Association of Corporate Counsel.

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